Learning Goal: I’m working on a management discussion question and need an explanation and answer to help me learn.
we know entrepreneurs take risks… risks for the sake of profit. Clearly, business owners do their best to get the best (highest) return on investment. This comes in the form of profits (money), employee recruiting efforts, employee retention strategies, training/coaching, and overall business development. All of this requires money and business owners need to decide the most efficient allocations of their financial and human capital resources.
Hypothetical Business Scenario
In 2018, Hamid took an early retirement after many years at the VP-level in a multinational retail banking services firm. In early 2019, he did his due diligence and completed a competitive analysis and discovered a niche market in the diversity and inclusion training space. Hamid started an consulting business offering diversity and inclusion coaching to retail banks and financial institutions. Since then he has been laser focused on building his client base and was able to achieve and sustain monthly profits since month 8.
As part of the annual 2019 tax reporting process, Hamid’s accountant is asking for receipts/invoices, and any other items which track the incoming and outgoing of cash and other business assets.
Questions
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